The owner of the Mall of America continues to be months behind on its mortgage payments and has entered a cash management agreement to avoid foreclosure.
MOA’s owner, Triple Five Group, started having trouble meeting the mortgage after the mall had to closed in March due to state-mandated efforts to curb the spread of coronavirus.
The loan was transferred to special servicing in May after the mall owner, Canada-based Triple Five, was no longer making full payments. At the time, a mall representative said revenue had fallen 85%.
Now the special servicer has entered into a cash management agreement with Triple Five requiring increased reporting requirements and monthly remittance of net cash, according to a report issued Tuesday by data firm Trepp.
The special servicer, CWCapital Asset Management, could not be reached on Wednesday.
Mall of America’s collateral value, which was $2.3 billion in 2014, has decreased to $1.9 billion, according to Trepp.
Malls across the country have uphill mountains to climb as they deal with struggling tenants, several of which have filed for bankruptcy in recent months or can’t afford full rent payments because of COVID-19 restrictions.
Trepp’s report shows MOA’s loan was paid through the month of April, showing payments on the $1.4 billion mortgage remains three months delinquent.
The mall reopened in June and is slowly getting back to normal with the majority of its stores and its indoor theme park Nickelodeon Universe currently open. Tenant rent collections have climbed from 33% in April and May to 50% in July, according to Trepp.
MOA’s finances are complicated by its owner’s other projects as well.
Triple Five pledged a 49% stake in the Mall of America for its American Dream megamall in East Rutherford, N.J., which hasn’t been able to fully open.
Despite the issues, retail experts said they expected lenders to work together with Triple Five on a solution for the Mall of America.
Twitter: @nicolenorfleet